If Bank 1 Is Acquired by Bank 3, What Is

question 80

Multiple Choice

If Bank 1 is acquired by Bank 3, what is the impact on the market's HHI? $$\begin{array} { | c | r | } \hline \text { Bank } & \text { Asset Size } \\\hline 1 & \text { \$100 million } \\\hline 2 & \text { \$200 million } \\\hline 3 & \text { \$500 million } \\\hline\end{array}$$

• A)An increase in the HHI of 1600.
• B)An increase in the HHI of 624.
• C)An increase in the HHI of 1563.
• D)A decrease in the HHI of 222.
• E)A decrease in the HHI of 360.

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Definitions:

Unemployment Figures

Unemployment figures represent the statistic that measures the number of people who are actively looking for employment but unable to find work, often expressed as a percentage of the labor force.

Unsystematic Risk

The risk associated with a specific company or industry, also known as non-systematic risk or diversifiable risk.

Quarterly Loss

A financial situation where a company spends more than it earns during a three-month period, leading to a negative net income.

Air Canada

The largest airline of Canada, serving domestic and international routes and offering cargo and passenger services.